MPRE Client-Lawyer Relationship 5 — Questions and Answers
Question 1: A lawyer is representing a client in a personal injury matter when the client is diagnosed with severe dementia and can no longer make decisions about the litigation. What should the lawyer do?
- Continue the representation as before and make all litigation decisions independently
- Withdraw from the representation immediately
- Take reasonably necessary protective actions, which may include seeking appointment of a guardian (Correct answer)
- Contact the client's family and accept their instructions
Correct answer: Take reasonably necessary protective actions, which may include seeking appointment of a guardian
Under Model Rule 1.14, when a client's capacity is diminished, the lawyer may take reasonably necessary protective action, including consulting with family members or petitioning for a guardian, to protect the client's interests.
Question 2: A client hires a lawyer to negotiate a business acquisition. After three months, the client fires the lawyer without cause. The attorney had spent 100 hours at $300/hour but had not yet achieved any result. What fee is the attorney entitled to?
- The full value of all work performed on a quantum meruit basis (Correct answer)
- Nothing, because the client fired her before any result was achieved
- Only the amount specified in the retainer agreement regardless of hours worked
- The full contingency fee that would have been earned upon completion
Correct answer: The full value of all work performed on a quantum meruit basis
When a client discharges a lawyer without cause, the lawyer is entitled to compensation for services rendered on a quantum meruit basis for the reasonable value of work performed.
Question 3: A lawyer representing a client in contract negotiations receives information that is clearly marked 'Confidential — Subject to Mediation Privilege.' The lawyer reviews it in full before noticing the marking. What should the lawyer do?
- Use the information since it was already reviewed
- Promptly notify opposing counsel and avoid using the information pending guidance (Correct answer)
- Destroy the information and say nothing to opposing counsel
- Seek a court order permitting use of the information
Correct answer: Promptly notify opposing counsel and avoid using the information pending guidance
Upon discovering that information received may be privileged or confidential, a lawyer must promptly notify the sender under Model Rule 4.4(b) and should refrain from further use pending resolution.
Question 4: A lawyer is negotiating a settlement on behalf of a personal injury client. During negotiations, the lawyer falsely tells opposing counsel that three expert witnesses are ready to testify when only one has been retained. This statement is:
- Permissible as aggressive negotiation tactics
- Permissible because all statements in negotiation are understood to be posturing
- A violation of Model Rule 4.1 prohibiting false statements of material fact (Correct answer)
- Permissible if the opposing counsel is also overstating their case
Correct answer: A violation of Model Rule 4.1 prohibiting false statements of material fact
Model Rule 4.1 prohibits a lawyer from knowingly making a false statement of material fact to a third person; falsely claiming expert witnesses are ready to testify is a material misrepresentation.
Question 5: A lawyer receives a $10,000 advance fee from a new client. The following week, the client fires the lawyer after only two hours of work at $250/hour. What must the lawyer do with the remaining funds?
- Keep the full $10,000 as compensation for taking the case
- Promptly refund $9,500 to the client (Correct answer)
- Keep the funds in trust until the client demands them back
- Seek a court order determining the appropriate fee
Correct answer: Promptly refund $9,500 to the client
Under Model Rules 1.15 and 1.16(d), upon termination a lawyer must promptly refund any advance fee that has not been earned; here, only $500 (2 hours × $250) has been earned.
Question 6: An attorney represents a client in a custody dispute. The client tells the attorney that she plans to take the children to another state in violation of a court order. What must the attorney do?
- Assist the client in the plan since client confidentiality controls
- Take no action but document the conversation
- Advise the client not to violate the court order and may disclose if necessary to prevent future crime (Correct answer)
- Immediately report the plan to the court
Correct answer: Advise the client not to violate the court order and may disclose if necessary to prevent future crime
Under Model Rule 1.6(b), a lawyer may (but is not required to) disclose confidential information to prevent a client from committing a crime, and must advise the client against violating the court order.
Question 7: A lawyer is asked to enter into a business transaction with her client, purchasing an interest in the client's restaurant while simultaneously representing the client in an unrelated trademark dispute. Under the Model Rules, this business transaction:
- Is always prohibited under Model Rule 1.8
- Is permissible without restriction because the transaction is unrelated to the legal representation
- Is permissible only if the terms are fair, disclosed in writing, the client is advised to seek independent counsel, and the client gives informed written consent (Correct answer)
- Is permissible as long as the client verbally consents
Correct answer: Is permissible only if the terms are fair, disclosed in writing, the client is advised to seek independent counsel, and the client gives informed written consent
Model Rule 1.8(a) imposes strict requirements on business transactions with clients: fair and reasonable terms, written disclosure, advice to seek independent counsel, and the client's informed written consent.
A lawyer is representing a client in a personal injury matter when the client is diagnosed with severe dementia and can no longer make decisions about the litigation.
What should the lawyer do?